Sterling is under increasing pressure. Economic data released today is continuing to suggest a slowing economy. For example, BoE’s credit data shows weakening consumer spending; whilst UK Manufacturing PMI dropped to a 17-month low. All these data squashed the probability of a rate hike this month.
Furthermore, these bearish trends are neutralising GBPEUR‘s upside breakout generated last month. The rate reverted back into its former range as traders continue to reposition out of long Sterling. A break of the 1.136 level may lead to further momentum selling.
GBPCAD – extends its downtrend after breaking the 1.7800 support.
GBPUSD – slumps below 1.3700 to stretch the correction further into the 1.35-1.36 support zone.
Jackson has over 10 years experience as a financial analyst. Previously a director of Stockcube Research as head of Investors Intelligence providing market timing advice and research to some of the world largest institutions and hedge funds.
Expertise: Global macroeconomic investment strategy, statistical backtesting, asset allocation, and cross-asset research.
Jackson has a PhD in Finance from Durham University.